Community Forecasts for March 16-20: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy bank SA
During March 9-13 trading week, the EUR/USD currency pair performed in a strong bearish trend, as the pair lost around 400 pips in five working days and crossed a number of considerable support levels. On Monday, the Euro remained relatively stable against the Dollar, after the European Central Bank began its highly-anticipated 60 billion euro bond buying program, while the Euro zone struck down Greece's latest proposal of reform measures, as part of its bailout package from its European creditors. However, starting from Tuesday, the single European currency entered a strong bearish trend, dropping more than 1% to 12-year lows, influenced by the diverging monetary policy outlook between the Federal Reserve and the ECB. The shabby Euro took another plunge on Wednesday, as a 1.1 trillion euro bond-buying program began to bite. However, the next day, the Euro rebounded slightly, against the Greenback, due to announcement of unexpected drop in US retail sales which gave the single currency an additional support. The retail sales fell 0.6% in February, posting the third consecutive monthly decline, while core retail sales, were flat, following a 0.1% decline in January. Nevertheless, on Friday, the Euro plunged again to 12-year lows, as mounting expectations for higher US interest rates bolstered investor demand for the Greenback.

The present trading week experienced some changes in market preferences, as now, long votes take almost 55% from all, underlying a further decrease for the Euro. This week will be rich on economic data from the both sides. On Tuesday, the Euro zone is to release revised data on consumer inflation. By the next day, the Fed is going to announce federal funds rate and publish rate statement, which outlines economic projection and the factors affecting the monetary policy decision.


© Dukascopy bank SA
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